Chinese Economics Thread

[antiterror13]

You are confused with the theoretical part for the actual calculation methods part.
GDP don't measure consumption for a reason, never did, never will.

what????

 

[zgx09t]

what????

Hmm... your slacked jaw dropping to the floor?

So if A sell a house for $1M to B and then B sell the house to C for $1.1M and then C sell it to A for 1M. The GDP added for the "silly" transaction is $3.1M without any impact to the wealth of the country .... but you know what I meant ..

Everything lined up, how you are confused and dumbfounded.
How did you come up with that above calculation? Out of your backside?
I don't know "what you meant" , at all.

 

[Bellum_Romanum]

A really educational debate on the recent Chinese regulatory process that's caused consternation and some worry to some foreign investors. Rui Ma was able to present the case for China's push for tougher regulations and made the case as to why it's necessary from an ecomic side but also from a political angle as well.

 

[Chish]

Of course GDP includes consumption. The value of all goods and services bought and sold in an economy.

Apparently some people may benefit from this, so I'll post it:

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Gross domestic product (GDP) is a

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of the market value of all the

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and services produced in a specific time period

You are double counting the GDP!
Only the goods and services PRODUCED are counted, you don't count the same "things" again when you consumed them!

Farmer produce vegetables, it's added to GDP. You work and earn wages, it's added to GDP. When you buy the veg (consumption) you don't add the purchase to GDP any more. Same with services.
Productions and consumption are not the same, they are opposites of each other.

 

[Overbom]

State Council.....
Premier Li has been a disappointment

https://twitter.com/i/web/status/1474207775303651332

 

[zgx09t]

State Council.....
Premier Li has been a disappointment

https://twitter.com/i/web/status/1474207775303651332

Just a wild guess, maybe it's not a good time to put another tax burden given housing market situation and pandemics?
Probably the tweet was meant to start a color revolution of some sort? A long shot, but worth a try anyways.

 

[Overbom]

Probably the tweet was meant to start a color revolution of some sort

Lol how is a colour revolution going to start with a tweet about housing tax...

Just a wild guess, maybe it's not a good time to put another tax burden given housing market situation and pandemics?

This might be it, however it would be good if a timeplan was released. I am guessing that local governments don't want the hot potato of a property tax, especially at this time

 

[zgx09t]

This might be it, however it would be good if a timeplan was released.

So that those outside saboteurs can plan their plots ahead knowing it'd be a hot potato subject with serious ripple effects if mishandled? Sprinkled with fake news and healthy dose of mis-information, voila we'd see another Huntsman standing in a square waiting.

 

[nixdorf]

what????

You are double counting the GDP!
Only the goods and services PRODUCED are counted, you don't count the same "things" again when you consumed them!

Farmer produce vegetables, it's added to GDP. You work and earn wages, it's added to GDP. When you buy the veg (consumption) you don't add the purchase to GDP any more. Same with services.
Productions and consumption are not the same, they are opposites of each other.

Obviously there are rules for counting and certain things that are excluded (indeed you want to avoid double counting which is why GDP is about the sale of FINAL goods/services), but typically 70% or more of the US economy is consumption and most of that is the consumption of services. If you don't like that figure go and argue it with the Fed or the World Bank.

 

[zgx09t]

Obviously there are rules for counting and certain things that are excluded (indeed you want to avoid double counting which is why GDP is about the sale of FINAL goods/services), but typically 70% or more of the US economy is consumption and most of that is the consumption of services. If you don't like that figure go and argue it with the Fed or the World Bank.

Oh, it took a while to google it, huh?
News flash, consumer spending and consumption may sound close, but not the same thing.
" Typically 70% or more of the US economy is consumption" spiel comes from Bloomberg, CNBC et al as a dumped down popular catchword to grab your imagination.

Think about it, it'll be true for all countries with the same consumption percentage of 70 % or more, as every country needs to consume most of what they produce, remember your little wiki formula, GDP = blah blah blah? The poorer the country is, the more consumption % it will be for that poor country, as they don't have enough to save, almost nothing of value to export, they must consume almost all of what they produce. That's one of many, many reasons why consumption is not directly measured in GDP, which the name itself says "product", not "consumption", not GDC or something like that.

Stop name dropping Fed and WB like as a last resort.
I think we're done wasting time here.